WASHINGTON (dpa-AFX) - Gold prices dropped to their lowest in almost five months Friday, extending recent losses amid speculation the Federal Reserve will raise interest rates early in 2018.
A rate hike next week is practically a shoo-in, as the U.S. created 228,000 jobs in November, and the unemployment rate was steady at 4.1 percent.
However, average hourly employee earnings were up by 2.5 percent year-over-year in November, reflecting an acceleration from 2.4 percent in October but below estimates for 2.7 percent growth.
FTN Financial Chief Economist Chris Low: 'From the Fed's perspective, there is nothing here likely to prevent a rate hike next week, but because a hike was nearly fully priced in anyway, it should not change expectations.'
Feb. gold fell $4.70, or 0.4%, to settle at $1,248.40/oz, having dropped 2.6% this week.
Rising stocks and stronger dollar also dented oil prices.
Copyright RTT News/dpa-AFX